.000 and sells it in June for S180.000. If the 35%, how much tax does Mike pay 3. Mike purchases an investment in January for S100 capital gains rate is 15% and Mike's incremental tax rate is on the money earned from selling the investment? A) $12,000 B) s27,000 C) $28,000 D) S63,000 A company that has a 40% effective tax rte had income of $300 million in each of the last 2 years. In one of those years, the company had deductions of S120 mllion. In the other year, the company had deductions of only $80 million. The difference in income taxes paid by the company in those 2 years was clo 4, sest to: A) $40 million B) S32 million C) S16 million . D) S12 million